MUMBAI: Layoffs are an inevitable aspect of the corporate world, especially in recession. But a poor economy should not be an excuse to cut jobs, Murthy said.

"In today's economic downturn, the challenge lies in having the courage to set an example that responsible profitability is a realistic achievement, and by using data to demonstrate that it is possible to preserve jobs in an economic downturn while innovating to increase profits, productivity and efficiency," Infosys' Chief Mentor, N R Narayana Murthy, told reporters on the sidelines of an industry meet here today.

It is simply too risky to pour money into projects or assets that may or may not yield the desired results. Therefore, from the perspective of resource management, there is a compelling case to be made for creative thinking and innovation to create new productivity and efficiency solutions from existing resources, Murthy said.

"The other imperative of Indian companies is to improve the lives of the largest number of Indians because that is how you can make this a better society," he said.

The Indian corporate sector has been extremely fortunate in escaping the worst of the global financial crisis. While America and other western countries posted sluggish growth rates and witnessed spiraling unemployment, India's economy grew 6.8 per cent during the financial quarter in June, up from 5.8 per cent in the previous quarter, Murthy told reporters.

"Despite the relative health of the Indian economy, we should be mindful of the fact that the danger of an economic downturn in India has not yet passed and situation could change rapidly," Murthy said.

"We must be alert and careful to temper our optimism with realism," the Infosys Founder said.